Long-term financial targets

To support the strategy for long-term sustainable growth, Gränges has set financial targets for profit growth, profitability, capital structure and dividend.

Profit growth

Average yearly operating profit growth above 10 percent.
Outcome: In 2024, operating profit increased by 2.3 percent as muted demand and price pressure were offset by market share gains and improved productivity.

Profitability

Return on capital employed above 15 percent.
Outcome: In 2024, return on capital employed decreased by 0.3 percentage points to 11.9 percent. The decrease in return on capital employed was fully attributable to the added capital employed in Asia from the acquisition and ramp-up of the new production facility in Shandong, China. 

Capital structure

Financial net debt normally between 1–2 times adjusted EBITDA.
Outcome:  In 2024, financial net debt increased to SEK 4,292 million, corresponding to 1.8 times adjusted EBITDA. The increase in financial net debt was due to the completion of several capacity expansion investments, as well as increased working capital driven by higher sales volume and the ramp-up of the new production facility in Shandong, China. 

Dividend

Dividend between 30–50 percent of profit for the year.
Outcome: The Board of Directors proposes a dividend of SEK 3.20 (3.00) per share for the 2024 fiscal year, corresponding to 34 (32) percent of the profit attributable to owners of the parent company for the year.